Halfstep;
I should have posted this in my original post: The problem most candlestick traders have with candle pattern reliability stems from the erroneous belief that the candle pattern defines the price action. Where as in truth, it is the price action that defines the candle pattern.
Ex:
Trader 1 sees a white (Close>Open) hammer line as bullish and further concludes that the price action leading up to the hammer must be bullish as well.
Trader 2 studies the price action and concludes it is bullish. From this bullish price action a white (Close>Open) hammer line appears. Trader 2 further concludes that because the hammer was created from/during bullish price action it is also bullish.
All things being equal (i.e. account size, risk tolerance, skill, etc), Trader 2 will tend to find candle patterns more reliable than Trader 1 regardless of timeframes used or markets traded.
I should have posted this in my original post: The problem most candlestick traders have with candle pattern reliability stems from the erroneous belief that the candle pattern defines the price action. Where as in truth, it is the price action that defines the candle pattern.
Ex:
Trader 1 sees a white (Close>Open) hammer line as bullish and further concludes that the price action leading up to the hammer must be bullish as well.
Trader 2 studies the price action and concludes it is bullish. From this bullish price action a white (Close>Open) hammer line appears. Trader 2 further concludes that because the hammer was created from/during bullish price action it is also bullish.
All things being equal (i.e. account size, risk tolerance, skill, etc), Trader 2 will tend to find candle patterns more reliable than Trader 1 regardless of timeframes used or markets traded.
Wyckoff VSA: (1) Supply & Demand (2) Effort vs. Result (3) Cause & Effect